Banks 'trying to exploit growing debt crisis'

Some banks are pressuring customers with debt problems to take out new loans, a consumer group said today.

Debtors who have problems keeping up their payments are being targeted by aggressive phone sales from some banks, the Citizens Advice Bureau warned. A spokeswoman said: 'Banks are still pressuring people with phone calls. They want them to either pay back what they owe or take out extra credit.'

The CAB, which helps borrowers in trouble by negotiating for them, has urged regulators and banks to stop irresponsible lending.

The number of debt problems it handled last year increased by a fifth to 1.7 million, setting a new record.